Key Notes
- The Citadel executive stated that investors are preferring gold, Bitcoin, and silver as a “de-risking” strategy amid US fiscal and monetary policies.
- The rally is fueled by expectations of Fed rate cuts, the ongoing federal government shutdown, and declining confidence in the US dollar.
- The US dollar’s share of global central bank reserves fell to 56.3% in Q2 2025, the lowest since 1994.
Bitcoin BTC $124 513 24h volatility: 0.1% Market cap: $2.48 T Vol. 24h: $66.21 B , gold, and silver prices have been hitting all-time highs recently, as demand for hard assets continues to grow amid the US dollar collapse. Citadel executive Ken Griffin stated that investors are fleeing the US dollar, and instead opting for hard assets as the fiat currency has lost 10% value since the start of 2025.
Investors Prefer Bitcoin, Gold, and Silver as ‘Debasement Trade’
Citadel CEO Ken Griffin has expressed concern as investors increasingly view gold as a safer asset than the US dollar. Speaking to Bloomberg’s Francine Lacqua on Monday, Griffin noted that substantial capital is moving away from the dollar as investors seek to de-dollarize or reduce exposure to US sovereign risk. He added:
“We’re seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize, or de-risk their portfolios vis-a-vis US sovereign risk.”
Interestingly, his comments come during the ongoing Bitcoin price rally to fresh all-time highs above $126,000. This rally in Bitcoin and precious metals has continued amid expectations of potential Fed rate cuts this month with the ongoing federal government shutdown.
This year, investors have also favored silver, gold and Bitcoin , which Griffin described as the “debasement trade.” Griffin added that US fiscal and monetary policies are resembling those typically implemented during a recession, further fueling asset markets.
US Dollar Dominance Drops to Three-Decade Low
The dominance of the US dollar as a reserve currency has dropped to the lowest levels in nearly three decades. The US dollar’s share of global central bank reserves fell to 56.3% in Q2 2025, marking the lowest level since 1994.
Since 2000, the dollar’s reserve share has dropped by 16 points, down from 85% in 1977. At the current pace, analysts at The Kobeissi Letter warn that the dollar’s weight could fall below 50% within five years.
The US Dollar’s reserve currency dominance is declining:
The US Dollar's share of the world’s central banks’ reserves fell 1.5 percentage points in Q2 2025, to 56.3%, the lowest since 1994.
Since 2000, this percentage has declined by 16 points.
By comparison, the US Dollar… pic.twitter.com/FCjeFoBcVW
— The Kobeissi Letter (@KobeissiLetter) October 7, 2025
The analysts noted that this is typically the reason why all other asset classes are hitting all-time highs at the same time. They wrote :
“Safe havens, risky assets, real estate, crypto, global bond yields, and everything in between is hitting daily record highs. The denominator for most assets, in this case the US Dollar, is what has changed. The US Dollar is on track for its worst year in 40+ years, down -10% YTD”.
Amid the Bitcoin price rally, inflows into spot Bitcoin ETFs have also shot up significantly over the past week. BlackRock’s IBIT saw nearly $1 billion in inflows on Oct. 6.
